Money Archives - Single Parent Wealth

Single Parents: Do You Have the Life Insurance You Need?

03/21/2021 Donna Comments 0 Comment

The Importance of Planning Ahead

As a single parent, you’re probably used to getting things done by yourself and provide for your family as best as you can. But what if something were to happen to you? Who will provide for your kids? In addition to having a Will, you should really have life insurance to be sure that your children will be financially provided for in your absence.

Life insurance is especially important for single parents, particularly if there is no back-up breadwinner for your children to rely on. The good news is you can usually get affordable life insurance through your employer if you have a full-time job. If you don’t have that option you will need to do some research and find an insurance provider that works for you. Take the time to scout out life insurance quotes on term life insurance, whole life insurance or a mix of both, if you haven’t already.

How Much Life Insurance should a Single Parent Have?

The amount of insurance you should buy is generally equal six to eight times your annual salary. There are a few factors that would determine how much you would have to pay for life insurance. Some factors are your age, and whether you have any pre-existing conditions. You also want to decide whether you want term life insurance or whole life insurance. And you definitely want to shop around for the best prices. Find a policy that works within your budget. You should be able to find a policy whose monthly payments are manageable.

Are there Other Sources of Income I Could Pass to my Children?

As you consider purchasing single parent single parent life insurance to protect your children’s future, look into other potential sources of income that can be passed on to your children. This could include retirement plans, other savings and Social Security. Doing these things could provide you with peace of mind should something unfortunate happen.

If you pass away before your kids are 19, they may be eligible to receive your Social Security benefit. Disabled children and elderly parents who depend on you for at least half their income may also receive “survivor benefits.” Questions on how much you can expect to receive on your Social Security benefit can be answered by visiting the Social Security Administration’s website.

Make a Plan for Your Children’s Future

Financial planning can be a difficult exercise for most people to wrap their minds around, but for the single parent it’s important to consider. It might be a good idea to visit with a financial planner if you aren’t confident about what type of savings plan you should have in place for your children. But as you have been able to provide for your children on your own in the past, protecting their future is just one more thing you can do as a strong single parent.

Scholarships for Children of Single Parents

03/03/2021 Hope Comments 0 Comment

You’re a proud single parent of a soon-to-be high school graduate. How will you finance your child’s college education? The good news is there is financial help out there in the form of scholarships. Depending on your circumstances you can search and find many scholarships to apply for that will help with the cost of sending your child to college.

To get you started in your search for scholarships for your college bound child, I’ve listed 10 scholarships for children of single parents.

1. American Legion Legacy Scholarship

Each year, the American Legion offers the Legacy Scholarship to provide a $37,000 stipend that can cover tuition, textbooks, and other living expenses for college students whose parent was killed while serving our country. Candidates must be the biological or legally adopted children of United States Armed Services members who died in active duty on or after 9/11. Eligible high school seniors and graduates should be enrolling for undergraduate studies at an accredited higher learning institution in America.
Contact:
American Legion Legacy Scholarship

2. Ava’s Grace Foundation Scholarships

Ranging in value from $3,000 to $5,000 apiece, the Ava’s Grace Scholarship Foundation (AGSF) distributes annual awards for up to four scholars across the state of Missouri who are being raised by a single parent while the other serves prison time. Qualified candidates must be U.S. citizens, exhibit financial need, achieve a minimum cumulative GPA of 2.5, be enrolling in an accredited non-profit college, be seeking their first degree, and have a parent incarcerated in a U.S. state or federal penitentiary.
Contact:
Ava’s Grace Foundation Scholarship

3. Ayo and Iken Children of Divorce Scholarship

Founded by a group of Florida divorce attorneys, the Ayo and Iken Children of Divorce Scholarship is presented annually for $1,000 to graduating high school seniors in Florida who live in a single parent family divided by divorce. Eligible applicants must plan to pursue post-secondary education after graduation, have parents permanently separated or divorced, and write a 2,000-word essay describing how their parents continue to show their love despite being part of a separated household.
Contact:
Ayo and Iken Children of Divorce Scholarship

4. Carolina Covenant Scholarship

For students from single parent households who are enrolling at the University of North Carolina at Chapel Hill, the Carolina Covenant Scholarship is available to potentially cover 100 percent of tuition costs for a maximum of four years and provide a laptop computer. Qualified candidates must be considered dependents, maintain full-time enrollment status, be pursuing their first bachelor’s degree, make satisfactory academic progress, have U.S. citizenship, and come from a low-income family that does not exceed federal poverty guidelines.
Contact:
Carolina Covenant Scholarship

5. David J. Ewing Scholarship Fund

In honor of a beloved father of two who lost his battle with cancer in 1990 at the youthful age of 36, the David J. Ewing Scholarship Fund was created by the University of North Texas to award tuition assistance to currently enrolled full-time undergraduate students who have lost a parent during their working years. Along with the application, candidates must submit two letters of professional recommendation, official high school transcripts, financial aid reports, and a two-page essay on their educational goals.
Contact:
David J. Ewing Scholarship Fund

6. Families of Freedom Scholarship Program

Based on a financial need formula, the Families of Freedom Scholarship Program provides annual awards to dependent children of 9/11 victims, including World Trade Center workers, Pentagon employees, airplane crew or passengers, emergency medical personnel, firefighters, and law enforcement officers killed in the tragic terrorist attacks. Eligible applicants must be enrolling in an accredited post-secondary program at a vocational school, community college, or university in the United States before their 24th birthday.
Contact:
Families of Freedom Scholarship Program

7. Heroes Tribute Scholarship

Through the Marine Corps Scholarship Foundation (MCSF), the Heroes Tribute Scholarship is granted to provide $7,500 for up to four years to children of Marines and Navy Corpsmen who were killed in combat operations on or after September 11, 2001. Eligible applicants must be planning to attend an accredited undergraduate college in the upcoming fall, maintain a minimum cumulative GPA of 2.0, be pursuing their first bachelor’s degree, and have been raised by a single parent with an adjusted gross income under $94,000.
Contact:
Heroes Tribute Scholarship

8. Iraq and Afghanistan Service Grants

Administered through the U.S. Department of Education, the Iraq and Afghanistan Service Grants are given annually for over $5,300 to college students raised by a single parent or guardian after a parent was killed in military service performed in Iraq or Afghanistan after the events of 9/11. Qualified candidates must be under 24 years old, plan to enroll in an accredited American college at least part-time, meet the Federal Pell Grant eligibility requirements, and have grieved the death of a parent in the U.S. Armed Forces.
Contact:
Iraq and Afghanistan Service Grants

9. Jackie Spellman Foundation Scholarships

In loving memory of a 24-year-old who lost her battle with acute myeloid leukemia (AML) after 14 months of painful treatments, the Jackie Spellman Foundation offers scholarships for $1,000 to $5,000 to graduating high school seniors or college students who have lost a parent from leukemia or lymphoma. Eligible candidates must plan to enroll full-time in college, have critical financial need, carry a minimum overall GPA of 3.0, and write an 800-word essay explaining how leukemia or lymphoma has forever changed their life.
Contact:
Jackie Spellman Foundation Scholarships

10. JoAnn Heffernan Heisen Scholarship

On the basis of academic merit and financial need, the JoAnn Heffernan Heisen Scholarship is granted annually at Syracuse University for $500 to $1,570 to currently enrolled undergraduate students raised within single parent households who need financial assistance to participate in a study abroad program. Along with a completed application, students must submit a one-page essay stating how studying overseas will help them reach their academic, personal, and career objectives in today’s global community.
Contact:
JoAnn Heffernan Heisen Scholarship

This list is only a portion of the scholarships that you can find out there to help in assisting you with funding your child’s college education. So keep researching to get the most scholarship assistance you can for your child.

What Every New Single Parent Should Know about Finances

05/15/2020 Donna Comments 0 Comment

Get a Grip on Single Parent Finances Now

If you’ve recently become a single parent due to divorce or the death of a spouse, here’s the basics of what you need to know and do to secure your financial health now and in the future.

Your Best First Action may be Inaction

Emotions, such as shock, anger, sadness, denial and grief can affect your ability to make good decisions about your best long-term financial interests. Give yourself six months to a year to work through your feelings before you begin making major financial decisions. If you need to make financial decisions sooner, enlist a trusted family member to help you make clear headed decisions. Hire a reputable financial advisor to help you make sound decisions.

Dealing with Large Sums of Money

If you’ve inherited a large sum of money, for example a life insurance policy death benefit, talk with a financial advisor about the best place to deposit those dollars over the short term to give yourself time to process your new situation.

Make Sure that Short Term Responsibilities are Taken Care of

Although you may feel overwhelmed by your current situation, it’s important that you take care of your current basic monthly financial obligations. You don’t want to ruin a good credit rating:

Close joint banking accounts and credit cards and, when appropriate, open new ones in your name.
Stay up to date on your bills. If you aren’t already signed up for auto pay, now is a good time to start.
Update your beneficiary designations and contact information on your financial and legal documents.

Dealing with Financial Hardship

If you all of a sudden find yourself financially strapped, look for opportunities to live on less. Look at your monthly expenses and see what you can live without. Many of our expenses seem like necessities, but they really aren’t. The following expenses can be cut until your financial situation improves:

Bundled cable, land line phone, and WIFI services. You really only need the WIFI.
Movie, magazine and newspaper subscriptions. Rent a movie from Red Box on occasion instead.
Take a hard look at your cell phone package and see if you can cut some of the cost.
Hairdressers, masseuses, nail salons are all non-essential. We learned this from the pandemic.

Moving into Your New Normal

As hard as it may be to find yourself as a new single parent, you will adapt and find your balance in time. But until then know that there will be adjustments along the way. And if you have financial questions consult a financial professional. He or she can help you establish a financial strategy to help meet your needs now and for the future.

Fighting for Child Support When Parents Are Unmarried

06/27/2018 Hope Comments 0 Comment

Disclaimer: Laws may vary from state to state. I advise you to do your own research.

Before You Can Request Child Support

Before we talk about support for the child born to unmarried couples, let’s look at child custody first.

Child custody cases for unmarried parents are quite different from those that involve divorced parents. Divorced fathers generally tend to find themselves in family court fighting for their right to retain contact or periodically visit their children after the separation. While divorced mothers generally are in the courtroom to fight for child support from the fathers. This dynamic is changing as more and more fathers get primary custody, and more mothers become the parent who earns the higher income.

For single parents who’ve never been married however, paternty must be established before the single father can fight for the right to have any type of visitation or joint custoday. And paternity must be established before the single mother can take up the issue of child support the court.

After Paternity is Established

A number of important issues arise for both the single mother and single father when child custody is taken up in court. When the parents of a child are not married to each other, sole physical custody of the children is often awarded to the mother. Unless a father establishes paternity though court approved procedures and takes a strong action to be awarded custody of his children, he is usually left with very little chances of gaining access to them.

If the single mother denies the single father access to the children, he has to seek action in a family court to establish paternity and wait for the judge’s final decision. Full custody of the children are usually only be granted to unwed fathers if the mother is found unfit to raise them. For younger children, the chances of an unwed father being awarded custody have always remained slim, and a lot of time and money is involved in these procedures.

Asking a Court to Grant Financial Support

When it comes to financial support for the child from an unwed couple, there is an increasing number of single mothers going to court to obtain some form of support from the single father. In these cases, the mothers have to first establish paternity so she can request financial support for the children under her custody. Without seeking the help of the court, it is often impossible for mothers to get the fathers to pay for their fair share in raising the children. When support is delivered voluntarily, single mothers face the threat of losing this anytime a single father decides to stop these contributions. But with a court decision after paternity is established, garnishments against the salaries or any form of income the father makes can be arranged, and the children are assured of continuing financial support until they are of age.

If you find yourself in this situation the best thing to do is stay focused on what is best for the child. Making sure that everyone’s legal rights are protected before problems arise is the smart thing to do.

Getting a Home Loan as a Single Parent

08/02/2012 Donna Comments 0 Comment

In these times of economic uncertainties, financial support can be hard to find. Loans and grants always have conditions attached and a person’s financial status affects how easy it is to get approval.

When someone seeking finance for a home loan is a single parent this can complicate the process of finding support even more.

Three things are important in these circumstances: knowing where you can get advice and help, finding out what is needed to qualify for a loan, and choosing the best option to suit the circumstances.

Help and support

A home loan or mortgage might be required for a number of different reasons, such as setting up a new home for the children or funding for a single parent to purchase a property. There may be a need to refinance so that an existing mortgage can be paid off, or sometimes it makes sense to borrow against the equity in a property in order to undertake home improvements to add value to the property and to increase amenities.

In some cases government schemes, such as assistance from the Federal Housing Authority (FHA), are available to help single parents. Occasionally state Housing Authorities can help too, so it is worth checking these out at the earliest opportunity.

Banks and other lenders often have specialist advisors, or home loan consultants, who can help single parents to make decisions about their financial options. When parents know what they need, a quick phone call or fast-track mortgage application can often be the key to getting a dialogue started with a potential lender.

Qualifying for a loan

Several factors determine eligibility for finance, such as the level of investment the borrower will have in the property and the size of the down payment. The latter can be a gift from a relative or family friend, and some single parents may be eligible for help with a down payment from the HOME Investment Partnerships Program.

The applicant’s credit score will also be a consideration, plus their work record and income level. Those who are part-time workers are not necessarily excluded – they may just have to shop around a little more.

Sometimes single parents are able to buy a property jointly with another person. It may be necessary for the co-borrower to actually live on the premises, so this may not suit everyone.

Single parents can apply for FHA assistance, the approval of which means that the government is acting as a guarantor. Although this does not mean that they will automatically get a loan, it definitely increases their chances. This program has resulted in an increased rate of home loans for single parents.

Making the right choice

FHA assistance can really make a difference, as can HOME Investment Partnerships finance and Housing Vouchers programs. Single parents should take full advantage of any of these if they qualify. When a bank or other lender offers a home loan to a single parent, check that the repayments are affordable.

There is no point in being overstretched financially or reducing the quality of life for the children if an alternative, cheaper arrangement is also available.

Make sure insurance will cover eventualities such as a job loss or reduction in income for another reason, and remember, always read the small print.

Source

Financial Planning for the Single Parent

03/12/2012 Donna Comments 0 Comment

As a single parent it’s even more important than ever to have a short term and long term financial plan. At About.com they have an article that covers some of the financial planning that you need to think about for you and your child. The article covers:

Creating a Budget
Getting Child Support
Finding Additional Help
Setting up an Emergency Fund
Life Insurance
Education Funding

While the article doesn’t go into a great amount of detail, if you are just starting to think about financial planning it’s a good place to start. Many single parents don’t even think about financial planning until they are hit with a crisis; and that’s the worst time to start.

You can read the entire article by clicking on Finances for a Single Parent